The Kailis Project area has hosted mining activities since the late 1890’s and contains a wide scattering of small historic workings. Saracen purchased the Kailis Tenements from St Barbara in October 2015 and, after successful feasibility studies, recommenced mining in April 2017. Prior to mining recommencing, refurbishments and improvements were made to existing infrastructure. Mining involves a 2 stage cut back to the existing Kailis pit, construction of the new southern waste dump and completion of the northern waste dump.
The Kailis project site is 6 kilometres north of Leonora, and less than 1 km west of the Leonora-Leinster highway.
The Kailis deposit is located within the eastern Goldfields province of the Archaean Yilgarn Block. It comprises a mafic and ultramafic sequence intruded to the west by a diapirically emplaced granitoid (Raeside Batholith). Weathering over the resource is intense and generally follows the shear zone down to a maximum depth of 80 to 100m.
Gold mineralisation is hosted in a quartz-sericite schist within a broad, shallow to moderately dipping shear zone with a strike length in excess of 1,800m. Mineralised intervals are often narrow (3 to 8m), but thicken to 15-20m in places. Higher grades tend to occur in the oxide and transitional zones with lower grade mineralisation in the fresh rock.